Business
Smart Sand, Inc. Announces Third Quarter 2020 Results
3Q 2020 Revenue of $23.4 million 3Q 2020 total tons sold of approximately 309,000 3Q 2020 Net Income of $36.3 million3Q 2020 Adjusted EBITDA of $6.1 million
About this update from Smart Sand, Inc.
[{"type":"text","content":"3Q 2020 Revenue of $23.4 million 3Q 2020 total tons sold of approximately 309,000 3Q 2020 Net Income of $36.3 million3Q 2020 Adjusted EBITDA of $6.1 million 3Q 2020 Contribution Margin of $10.4 million THE WOODLANDS, Texas, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Smart Sand, Inc. (NASDAQ: SND) (the “Company” or “Smart Sand”), a fully integrated frac sand supply and services company that is a low-cost producer of high quality Northern White frac sand and provider of proppant logistics and storage solutions through its in-basin transloading terminal and SmartSystemsTM products and services, today announced results for the third quarter 2020.\n Charles Young, Smart Sand’s Chief Executive Officer, stated “While these continue to be difficult times to operate in, Smart Sand continued to demonstrate its ability to manage successfully through volatile operating cycles for our industry. I want to thank all of our employees for their continued diligence and efforts to support the company through challenging times.” “We continue to stay focused on enhancing our mine to wellsite solutions capabilities to provide sustainable and efficient sand supply and logistics services to our customers. The acquisition of Eagle Materials’ proppant business is a great example of our strategy to acquire strategically complementary assets at attractive valuations to enhance our capabilities to be a premier, long-term provider of northern white sand in the market place.” Business Combination On September 18, 2020, we acquired the Oil and Gas Proppants Segment of Eagle Materials Inc, which includes frac sand mines and related processing facilities in Utica, Illinois and New Auburn, Wisconsin, with approximately 3.5 million tons of total annual processing capacity, 1.6 million tons of which has access to the BNSF Class I rail line through the Peru, Illinois transload facility. The transaction is considered a bargain purchase whereby we purchased total net assets with a fair value of $41.9 million for total consideration of $2.1 million, resulting in a bargain purchase gain of $39.9 million, recorded in net income for the three months ended September 30, 2020. In connection with our acquisition we entered into a Liquidity Support Loan Agreement, whereby we may draw loans in an aggregate amount up to $5.0 million during the twelve month period ending September 18, 20...